Incoterms

Incoterms or International Commercial Terms is the terms (a set of three letters code) which are used in International Trading to regulate, so that there is no misinterpretation in making contract; Incoterms regulates the requirements to be fulfilled in shipping or delivery of goods

E

EXW

Ex Works

The seller makes available the goods which have not received export license in its premise or other places (please mention the place).

F

FCA

Free Carrier

The seller hands over the goods which have received export license at the carrier’s disposal appointed by the buyer in the place of destination (please mention the place).

FAS

Free Alongside Ship

The seller delivers the goods which have received export license alongside the ship at destination port (please mention the port).

FOB

Free on Board

The seller must load the goods the goods on board the vessel at the mentioned port, the goods are clear for export (please mention the port)

C

CFR

Cost and Freight

The seller delivers the goods to the vessel at the mentioned port, the goods are clear for export and the cost of freight is paid by the seller (please mention the port)

CIF

Cost, Insurance and Freight

Similar to the CFR, however the seller must procures and pays the insurance and premium (please mention the destination port)

CPT

Carriage Paid To

Similar to CFR, however the goods are delivered to certain place of destination (please mention the place of destination)

CIP

Carriage and Insurance Paid to

Almost similar to CPT, however the seller pays for insurance for the risk during transport (please mention the place of destination)

D

DAF

Delivered At Frontier

The seller delivers the goods at the place in the border area but not yet entering the custom area of the destination country (please mention the place of destination)

DES

Delivered at Ship

The seller delivers the goods to the buyer on board the ship, the passing of risk does not occur until the goods are made available for unloading (please mention the destination port)

DEQ

Delivered Ex Quay

The seller delivers the goods to the buyer on the destination port, uncleared for import (please mention the destination port)

DDU

Delivered Duty Unpaid

The seller delivers the goods which are not cleared for import or unloaded at the place of destination, of which the authority of the buyer, uncleared for import (please mention the place of destination)

DDP

Delivered Duty Paid

Similar to DDU, however the import matters is cleared.

E

EXW

Ex Works

The seller makes available the goods which have not received export license in its premise or other places (please mention the place).

F

FCA

Free Carrier

The seller hands over the goods which have received export license at the carrier’s disposal appointed by the buyer in the place of destination (please mention the place).

FAS

Free Alongside Ship

The seller delivers the goods which have received export license alongside the ship at destination port (please mention the port).

FOB

Free on Board

The seller must load the goods the goods on board the vessel at the mentioned port, the goods are clear for export (please mention the port)

C

CFR

Cost and Freight

The seller delivers the goods to the vessel at the mentioned port, the goods are clear for export and the cost of freight is paid by the seller (please mention the port)

CIF

Cost, Insurance and Freight

Similar to the CFR, however the seller must procures and pays the insurance and premium (please mention the destination port)

CPT

Carriage Paid To

Similar to CFR, however the goods are delivered to certain place of destination (please mention the place of destination)

CIP

Carriage and Insurance Paid to

Almost similar to CPT, however the seller pays for insurance for the risk during transport (please mention the place of destination)

D

DAF

Delivered At Frontier

The seller delivers the goods at the place in the border area but not yet entering the custom area of the destination country (please mention the place of destination)

DES

Delivered at Ship

The seller delivers the goods to the buyer on board the ship, the passing of risk does not occur until the goods are made available for unloading (please mention the destination port)

DEQ

Delivered Ex Quay

The seller delivers the goods to the buyer on the destination port, uncleared for import (please mention the destination port)

DDU

Delivered Duty Unpaid

The seller delivers the goods which are not cleared for import or unloaded at the place of destination, of which the authority of the buyer, uncleared for import (please mention the place of destination)